Thank you, Mr. Henry. Good afternoon. Mr. Morin. Sorry. I was too anxious. I would like to welcome back the Members for the continuation of the Third Session. I will note that we all have been busy over the summer with committee work and also constituency visits. I hope that you were able to spend some time with your families and your friends. Now for the business of the House before us. I would like to inform the House that I have received the following messages from Her Honour, The Commissioner of the Northwest Territories dated September 24, 1996.

Dear Mr. Speaker:

I wish to advise that I recommend to the Legislative Assembly of the Northwest Territories, the passage of Supplementary Appropriation Act, No. 1, 1996-97 during the Third Session of the 13th Legislative Assembly.

signed, Yours truly, Helen Maksagak, Commissioner.

Orders of the day, Ministers' statement.

Thank you, Mr. Speaker. I have an emergency statement. Mr. Speaker I would like to offer condolences on behalf of the Northwest Territories to family, friends and colleagues of the former Premier of Quebec, Robert Bourassa. As Members know, Mr. Bourassa passed away earlier today after a long battle with cancer. This is a sad day for all Canadians as we have lost a major figure in the Canadian political history. While he served the people of Quebec in his capacity as Premier. He also served all of Canada with his passion and beliefs regarding the Canadian unity and constitutional issues. He will be missed by not only the people who knew and worked with him but by all Canadians who benefited from his contribution of keeping Canada one nation. Thank you, Mr. Speaker.

Thank you Mr. Morin. I will ask the Clerk to send a message of condolences to the family of Mr. Bourassa. Ministers' statement, Mr. Morin.

Thank you, Mr. Speaker.

As this is not the beginning of a new session -- and is rather a resumption of the Third Session of the 13th Assembly -- instead of outlining what we have ahead for this sitting, I would like to use this occasion to look back on what we, as a government and an assembly, have achieved to date.

We are at an important milestone for this government -- indeed, in some ways, it is the halfway point. A point where we are well on the road to fulfilling our goals and vision for the North, but also embarking on creating new roads and new beginnings.

With almost one year behind us, we really only have little more than a year to implement our program. As Members know, the final year of this Assembly will be largely devoted to ensuring a smooth transition to division.

With that perspective, we must ask ourselves, what do we want to leave as a legacy to the governments that will follow us?

What kind of difference do we want to make in the lives of the people of the North, and for future generations of Northerners?

When the 13th Assembly took office almost one year ago, it did so faced with an extremely demanding and difficult financial and political agenda.

To meet these challenges, we developed and agreed to the following vision:

"The 13th Assembly's vision for the future is for a Northwest Territories with a secure financial future that will be more established as a viable political and economic unit of Canada; and that a healthier, better educated and more self-reliant people is able to enjoy good quality of life, and has access to more of the jobs they want and need."

To help fulfil this vision, we set out 10 priorities.

Of those priorities, the one that has received the most attention has been our actions and efforts to secure our financial future.

It is not easy to implement programs of restraint and reduction knowing, without a doubt, it will affect the lives of the people we represent.

But these are not easy times. Not for our government, or any other government in this country.

We need to continue to ask if we have the right balance. But I believe we are doing the right thing at the right time and for the right reasons ... to best serve the people of the Northwest Territories.

Mr. Speaker, I would like to take a few moments to recap what we, the members of this legislative assembly, have accomplished in the past 321 days. And in doing so, provide an update on how we are working to fulfil our priorities.

First, Mr. Speaker, I would like to address our pledge to secure our financial future.

As I have already stated, our main priority at this time last year, and today, continues to be balancing the budget and returning this government to a position of fiscal health. Under the direction of the Minister of Finance we have made substantive gains towards this goal. Working together in this House, we have implemented a two-year program that will fundamentally restructure the way we do government in the Northwest Territories.

As Members of this House are acutely aware, this type of fundamental structural change requires that difficult choices be made. Choices that are difficult but necessary.

Mr. Speaker, we have attempted to make these choices in a fair and equitable manner -- in a manner that treats all communities and regions as fairly as possible. That is the standard we committed to work to, and we, as a group should ... indeed must ... discuss whether we are meeting that standard. Overall, I am pleased to announce that we are on the way to accomplishing our goals and meeting our overall budget targets of a $43 million deficit for the current fiscal year. It is a good beginning, but bear in mind, to complete our program and bring in a balanced budget for 1997-98, more tough decisions and choices about how we will spend our limited resources are required.

To secure our financial future, we must stay the course we have set and continue to do -- not what it popular -- but what is best. We need to look beyond today and make decisions that build the best foundation for the North beyond 1999.

Mr. Speaker, this government has pledged to improve social conditions, to empower communities, and to work towards community wellness.

Earlier this year, we transferred the responsibility for community empowerment from the Intergovernmental and Aboriginal Affairs to the Department of Municipal and Community Affairs, because that department has people at the community level throughout the territories who are in the position to get the job done. And, I am pleased to report, they have begun to do just that. Under the direction of the Minister of Municipal and Community Affairs, Manitok Thompson, the government has prepared a report on community empowerment that will guide us as we move ahead with this initiative.

As well, the government has committed to fast-tracking legislation and changes to policy that will allow for block funding of communities so they can set their own spending and their own program and service priorities.

In addressing the Asembly earlier this year, I noted that the community wellness initiative is closely linked with income reform and community empowerment. That is why Minister of Health and Social Services Kelvin Ng is leading a restructuring of government agencies to create a single, cost-effective agency to serve as a community wellness centre in each community.

With decisions in the hands of people at the community level, funds can be allocated to the most needed social and health services in a particular community. Healthy people and health communities will contribute to a strong economy, and a stable future for the North. Therefore, when it comes to community health and community empowerment we will continue to invest whatever we can afford to ensuring we are doing all we can.

Mr. Speaker, this government has pledged to improve economic conditions.

Aside from the stability a balanced budget will bring to the territory, we have also been working in other areas to secure a stronger economic future for our people.

We, as a government, have taken a public stand on the BHP Diamond Project to ensure northerners will have the chance to gain employment and contracting opportunities from this venture. We have made our point clear, and we will not bend if it means that Northerners will not be allowed to reap the true benefits of economic development in the North. I believe BHP wants to be partners with us in this process -- they want to get on with the job ... and so do we.

I understand that good progress is being made in discussion between aboriginal groups, BHP, the Department of Indian Affairs and Northern Development, and our government this week. As these discussions continue, I believe we will be able to reach an agreement that meets the needs of northern people. It is an important precedent ... a precedent that will establish the ground rules for other companies investing or moving to the North.

It is also important, Mr. Speaker, to point out that this issue goes beyond the BHP Diamonds Project. It is an issue of control of northern resources.

Until such time as this responsibility is devolved from the federal government to the people of the Northwest Territories, we are always going to be placed in a position of trying to ensure that the federal government protects our interests in non-renewable resource projects. This government will remain vigilant in ensuring that this occurs.

Mr. Speaker, this government has pledged to develop a more effective and efficient government structure.

When this government came to power just under a year ago, we made a promise that we would restructure and reorganize government so we would not be spending as much on administrative costs.

We have made many moves toward a leaner and more effective government structure.

We have consolidated the departments of Economic Development and Tourism, Renewable Resources and Energy, Mines and Petroleum Resources into one department to not only save money, but also, under the guidance of Minister Stephen Kakfwi, to create one-stop shopping for resource-related development and economic activity.

An another step in fulfilling this priority, the government will be proceeding to redistribute the responsibilities of the Department of Safety and Public Services by December 1996, creating over one million dollars in savings in support of deficit elimination priorities.

It should be emphasized, however, that program transfers or restructuring associated with this initiative will be achieved with the consultation and input of all honourable members, and with absolutely no reduction, no reduction to safety or service levels in Northern communities.

Mr. Speaker, this government is also reviewing the privatization of a number of government agencies and departments, including the petroleum product production division, property management, and computer systems and services.

Overall, we have continued to look at every aspect of government operations to ensure they are efficient and effective, and to set a strong example for the governments that follow.

Mr. Speaker, this government has pledged to take action on aboriginal issues.

Our first step to fulfil this priority was to re-focus Intergovernmental and Aboriginal Affairs within the Executive department to make sure this area of importance has broader access and support from cabinet.

As we have identified this as a priority of this government, and the legislative assembly, we must ensure aboriginal affairs and concerns are front and centre in all that we do -- from the creation of a new constitution for the western territory, to moving the agenda forward on self-government.

Mr. Speaker, a final priority I would like to address today is our pledge to be heard at the national level.

This summer, I had the opportunity to participate in the 17th Annual Premier's Conference in Jasper.

Among the issues brought to the table were federal reform, economic growth, social policy reform and renewal, and the topic of who has control over what.

As an active participant in these discussion, we were able to make our position on these issues clear. At the same time, we were able to develop alliances with the Yukon and the provinces to help strengthen our voice at the national level.

I can say to you with confidence that we are being heard like never before ... and I intend to make sure that it stays that way.

Mr. Speaker, as we have all been working to complete the tasks and priorities at hand, and within a short timeframe, the government recognizes we have not done as well as we could have keeping people informed -- both within this house and with the people in our communities.

I am pleased to report, members will soon see a strategy for this government that will involve all members in opening the channels of communication with our constituents and other key stakeholders.

Mr. Speaker, that is a summary of the challenges that we have faced over the past year, and the program we have put in place to meet those challenges.

Where do we go from here?

As I stated earlier, even though we have only 10 months, even though we are only 10 months into our mandate, time is short to implement our program. We must consider what we can realistically accomplish over the remaining 30 months of our term. I welcome that debate.

The first priority remains the necessity of putting our financial house in order. We are six months into a two-year program to balance the budget of this government. I have told you we are on track to meet our budget targets for the current year. However, many tough decisions will have to be made over the course of the next six months to bring in a balanced budget for 97 - 98.

If the Members of the House continue to work together, I am confident we will accomplish this goal.

Mr. Speaker, fiscal responsibility also means that we must move towards developing a healthier economy in the Northwest Territories.

The Standing Committee on Government Operations has prepared several reports proposing an investment strategy for the Northwest Territories.

This strategy, as well as strategies for job creation and the negotiation of a Northern Accord that will ensure northerners take control of northern resources, are essential elements of a vital and healthy economy.

Hand in hand with the necessity to deal with the financial situation is the work required leading up to a division of the Northwest Territories.

As we move closer to 1999, more and more of the time of this Assembly will be devoted to making decisions that will ensure a smooth transition to division into the two new territories. We must take the time to do things right. We are making vital decisions that affect the future prosperity -- both politically and economically -- of the North.

The Minister of Intergovernmental and Aboriginal Affairs, Jim Antoine, will be tabling a report from the Constitutional Working Group during this session that will put us well on the road to developing a constitution for the western Territory.

As well, the Minister of Finance has begun discussions with the Honourable Paul Martin on a process to negotiate funding for the two new territories. Mr. Todd will make sure Mr. Martin understands our unique circumstances as part of that important process.

This Assembly must also develop a process that will ensure a fair and equal division of the assets and liabilities for the two new territories. But that will only be a beginning.

We have an enormous task ahead of us in the division of the Northwest Territories. One that will demand our time in the months to come.

We are committed to ensuring that all members are involved in this process. To this end, the Division Planning Committee of Cabinet has recently appointed two ordinary members to participate fully in their discussions.

Mr. Speaker, time is short and we have many decisions to make.

In closing, Mr. Speaker, I would like to stress once again, that we have made a commitment to build a better future for the people of the North. The legacy of this Legislative Assembly must be to ensure that April 1, 1999 is a day of celebration for the people of both new territories.

Mr. Speaker, I was raised to believe that we can always accomplish more by working together. Our elders have shown us this is the best way to create a better world and a better life. I believe if we honour that lesson, and remember what the elders have taught us, we can fulfil our vision by working together.

Thank you, Mr. Speaker.

---Applause.

Thank you Mr. Premier. Ministers' statements. Mr. Morin.

Thank you Mr. Speaker. I wish to advise Members that Honourable Kelvin Ng. will be absent from the House today to attend a meeting of the Ministerial Council on Social Policy Reform and Renewal in Calgary. As well, the Honourable Charles Dent will also be absent from the House today to attend the Canadian Council of Ministers of Education, and the Canadian Education Association National Convention in Saint John's. Thank you Mr. Speaker.

Thank you. Ministers' statements. Mr. Antoine.

Mahsi Mr. Speaker. It has been my privilege over the last several months to serve along with the Aboriginal Summit representative, Mr. George Kurzewski, as co-chair of the Constitutional Working Group, developing the draft constitutional package for the new western Territory.

The Constitutional Working Group has been investing considerable time and energy into ensuring the document we present offers a positive and effective starting point for public consultation. Our original schedule and timeframe called for tabling a draft constitutional package today.

Presently, however, we are working to incorporate recommendations discussed by the working group as recently as last weekend, and now need adequate time for finalizing and printing the document.

We are close. We need to take the time to be sure to do this right. Mr. Speaker, we now plan to table a constitutional document in this House in Wednesday, October 16. Mahsi cho. Mr. Speaker.

Thank you. Ministerial statement is now over. Returns to oral questions. Mr. Ootes.

Thank you. Your motion is in order. The motion is not debatable. All those in favour. All those opposed. Motion is carried.

---Carried.

Members' statements. Mr. Picco.

Thank you, Mr. Speaker, and welcome back. Mr. Speaker, over the past several months this...

---Applause.

Thank you fans. Over the past several months, since the October election, the 13th Assembly has been preoccupied with the deficit and cut-backs, but many other important areas affecting the residents of the NWT should also be discussed and debated.

Mr. Speaker, in my community of Iqaluit, we are short approximately 70 housing units. Even though we are named the new capital of Nunavut, we still have a very high unemployment rate. Mr. Speaker, the citizens of the Northwest Territories want to see the 13th Assembly to begin to debate these issues have put forward solutions to grave and other concerns of residents.

Yes, the deficit is important. But our residents need to know that this Assembly is also working at improving other areas of our well-being.

The knock on this government is that we have discussed and made most decisions behind closed doors. Mr. Speaker, we have to demonstrate our openness to discussion, by having more debate in the House, and more public discussion. The Premier opened the 13th Assembly by saying that no other government of the NWT faced the challenges of the 13th Assembly, division, a looming deficit, and high unemployment. Mr. Morin was correct. The challenges are there. But by providing open government with open public debate within the framework of the Legislative Assembly, our constituents will at least see the government working to correct these problems. We have to rise above the rhetoric, and begin to develop strategies, and plans that will bring us to division, and place both Nunavut and the new western Territory on firmer ground.

Mr. Speaker, at all levels of government, there is leakage of what programs are going to be cut, downsized, or the departments amalgamated. By being more open on these issues, public concern can be addressed before the usual doom and gloom stories, and worst case scenarios and half truths are circulated.

Mr. Speaker, when will the government table a job creation plan? When will we debate and give direction on our housing shortage? Over the next few days, I will be questioning the ministers responsible for these issues, and hopefully raise these concerns in the House. Thank you, Mr. Speaker.

Thank you Mr. Speaker. Members' statements, Mr. Enuaraq.

Mr. Speaker, the summer break is a wonderful time for all of us to return to our ridings, restore our strength from the land, and the lifestyle, and to get an earful from our constituents.

The people of my riding have always been great travellers and hard working, determined hunters and one of the most valuable items during their travels was the exchange of news and information -- about the land, the weather, and ice conditions, and most importantly, about the people.

Traditionally, we took care of ourselves, just as we did everything else ourselves. With the building of the communities and the creation of a new lifestyle, radio became the first new technology to fit easily into our lives, first with short-wave and later with local community radio transmitters. Access to news and information in our community and region as well as the other areas of the north, and the entire country has always come to us through the radio.

Our elders, the Innumariit, quickly learned to use local access radio to pass along the oral history and traditional knowledge of our people. Hunters still report on their recent trips, the new dangers or successful location of caribou at a particular spot. Inuktitut language radio programming has developed to a very high level by CBC North and Inuit Broadcasting Corporation. This is programming that wins awards around the world and sets standards for others to match.

Mr. Speaker, in a climate of constant cuts, there is the danger of becoming numb to the painful realities of our people. We cannot allow this to happen if we are to represent not just the interest of our people, but the needs of all people.

Earlier this month, the CBC announced more massive cuts to its entire system. Most of the cuts in the north will be felt in radio, which is still much larger than television in CBC North.

Mr. Speaker, may I ask for unanimous consent to conclude my statement?

Thank you. The Member for Baffin Central is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays to conclude this statement. Mr. Enuaraq.

There will be staff cuts and they will lead to reduction in program quality and content, and just at a time when Inuktitut programming is becoming even more central to future development of our people in Nunavut.

Mr. Speaker, earlier this week I learned that the government has now decided it can no longer afford the $110,000 a year to keep the local radio transmitters operating in the smaller communities. Both regional programming and local access broadcasting will be directly affected as old equipment fails and is not repaired. This government, Mr. Speaker, will be creating a double standard that existed 25 years ago, where the bigger communities can get more services, while the smaller communities, two of which I represent, get fewer and fewer services. People in the smaller communities will now be forced to listen to radio programming from south -- perhaps, rock from Vancouver, or (with all due respect to my colleague from Iqaluit) talk shows from St. John's.

Is this how we preserve our language, perhaps our history, our traditional knowledge?

This is a one-two to punch from large organization that our people have depended upon for 35 years -- and it amounts to the people in twenty-eight communities then saying "Too bad, go listen to the south."

Mr. Speaker, the irony is even greater when we listen to the great support and enthusiasm we have all expressed for the new information highway initiatives our government has started. Over $3 million will be spent to connect all our communities with high speed data networks -- yet we cannot afford $110,000 to keep the smallest communities, those with the least resources, connected to their fellow citizens, their region and their country.

Returning from the land and my communities, the message is loud and clear -- do not cut initial and long valued services. To do so without support from the people is to leave us all open to criticism that we have become a government that knows the cost of everything and the value of nothing.

Thank you, Mr. Speaker.

Thank you, Mr. Enuaraq. Members' statements, Mr. O'Brien.

Thank you, Mr. Speaker, and welcome back. Mr. Speaker we are all acutely aware that this government is facing the most trying financial time in the history of the NWT, but are we on the right track in dealing with this very scary situation? For the past ten months this government has been hacking and cutting at the territorial budget in order to meet the target set by the self-imposed Deficit Elimination Act. Mr. Speaker, prior to the VTA and other benefit reductions, I requested that this House take a sober second look at the impact these cuts would have on the small off-road communities. Unfortunately little consider was given, therefore, the cuts took place and the hardships began. Mr. Speaker, this government is now looking at another round of deep cuts to our budget, programs and services. I am not convinced that the smaller off-road communities, and to some extent, the major centres, if they can handle these cuts. Mr. Speaker, what will we really accomplish of by division in 1999 we have a balanced budget but have a quality of life that is similar to the Flintstones? I believe if we continue with these drastic cuts it will be to our detriment and could put the Territories back some twenty-five years. To compound this issue, I will remind everyone of the fact that, very few, and in some cases, no jobs for northerners have been created. I seriously believe that the Premier and his Cabinet should pause and review it's cost cutting agenda for the next year. This would also include putting a hold on most of the departmental restructuring as I am not convinced that the small financial savings are really worth the significant human cost.

Mr. Speaker, one does not require a brain surgeon to carry out these cuts. The real tests and the real challenge is to create jobs not cut them, and furthermore, if we do not move quickly to stimulate our fragile economy, through mining or other such initiatives, our economic mobility may just cease. Mr. Speaker, I seek unanimous consent to conclude my statement.

Thank you, the member for Kivalliviq is seeking unanimous consent to conclude his statement, do we have any nays. You have unanimous consent, conclude your statement.

Thank you, Mr. Speaker. Mr. Speaker, in closing I would say that, while it may

be vogue and appropriate for provinces like Ontario and Alberta to make such drastic cuts in their spending, we Mr. Speaker, are not Ontario, nor are we Alberta. We are the Northwest Territories where many communities have up to seventy percent unemployment, not twenty percent, which is the worst case scenario for a southern province.

Mr. Speaker, we cannot afford to follow this trend of southern Canada. This may mean that we have to carry a larger and extended deficit. I believe we must concentrate now on creating jobs and kick starting our economy. This, in return, would assist us in putting our financial house back in order. Mr. Speaker, it is very difficult for the public to accept such drastic reductions when, to date, this government has provided little or no proof that this cost cutting agenda is showing measurable, constructive and feasible results. This information must be forthcoming before we proceed any further. Mr. Speaker, the reality is that we may have to spend more to make more and also to get ourselves out of this financial sewer. Thank you, mutna, mahsi cho.

Thank you, Mr. O'Brien. Members statement, Mr. Barnabas.

Thank you, Mr. Speaker, first of all I would like to welcome everyone back to the Legislature. I hope you all had a good summer as we did. I would like to say, Mr. Speaker, that during this summer we were told often about some sad pieces of news from my community. However, these items I considered seriously with a view for the future.

Last week one of my constituents Jimmy Kanatsiaq passed away following a hard battle with cancer. Jimmy had left his wife Hannah and six children. He was only 51 at his death. He had relatives however, in Hall Beach, like so many families in many of the regions they have relatives in a number of towns which are far apart and sometimes they cannot see each other for many years.

I was asked to assist Hannah and her family to return to Hall Beach. However, it was not possible to arrange any assistance through the government departments, although I did request assistance. But it was the people in my constituency in Arctic Bay and the people of Hall Beach and the people of Repulse Bay which is the town where Jimmy Kanatsiaq was born and raised. These people helped to solve the problem. They all worked together and contributed money until the airfare for the entire family was raised for them to go to Hall Beach. All of this was done in a week's time and the family has now been moved back to Hall Beach.

Mr. Speaker, I ask for unanimous consent to conclude my statement.

The Member for the High Arctic is seeking unanimous consent to conclude his statement. Do we have any nays? We have no nays. Conclude your statement Mr. Barnabas.

Thank you, Mr. Speaker. This is an example of the way Inuit have survived difficult times throughout our past by working together. I would like to thank all those people who have helped so much in such a short time. Thank you, Mr. Speaker.

Thank you. Members' statements, Mr. Roland.

Thank you, Mr. Roland. Members' statements, Mr. Miltenberger.

Thank you. Members' statements. Mr. Ootes.

Thank you. Members' statements. Mr. Henry.

Thank you, Mr. Speaker. I would like to take a moment to welcome back my fellow Members to your capital city.

Mr. Speaker, I have stated both in this House and to my constituents that cuts this government makes must be done fairly. Mr. Speaker, today I wish to elaborate on this. I was very upset to hear of the cuts to the seniors' fuel subsidy program. Seniors who are not on income support will no longer be eligible for this subsidy. It is unfair that those who have sacrificed to pay for their homes now have to pay more by losing this subsidy. Seniors are telling me that the ones that had been responsible and have taken precautions to provide for their future are the ones getting hit.

This government has also targeted in the last round of cuts, those who own their own homes by eliminating $1 million from the homeowners' property tax rebate program which meant a homeowner could claim back up to $300 on their property taxes. The vast majority of this cut in programming was absorbed by three communities. It is those that have paid already who end up bearing the burden. This is not fair. Everyone has to take the responsibility to contribute whether they are at the top or at the bottom of the scale.

The message has to be delivered that everyone contributed to our debt so everyone has to pay. We are giving a message that if you pay your taxes and make provisions for your retirement, we will target you. So if you do not look after yourself, that is okay. This government will take care of you with no responsibility or obligation. Mr. Speaker, that is wrong.

Employee cuts in the Northwest Territories Housing Corporation regional office send the same wrong message. Eight jobs were eliminated in the North Slave regional office. No other regional offices are seeing these types of job cuts. The offices in Yellowknife, we are told, are more efficient so they get the job cuts. Mr.

Speaker, this is wrong. We are penalizing them for being efficient. This is not fair. All regional offices have to also get the message. The message could be communicated by depleting some of their resources, but, instead, they are left relatively untouched.

Mr. Speaker, I seek unanimous consent to finish my statement.

The Member for Yellowknife South is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays. Continue your statement.

Thank you, Mr. Speaker. I have been in this office for 11 months now and have consistently argued that necessary cuts in government programs and spending have to not only be fair, but be seen to be fair. The cuts to the seniors' fuel subsidy program and to the jobs such as the NWT Housing Corporation's regional office do not meet that standard. Why can we not promote the novel idea that all residents and all communities have to play their part in solving our financial difficulties?

My constituents, Mr. Speaker, are more than willing to play their part in assisting this government to solve their financial problems as long as it is done fairly. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Henry. Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. I would like to welcome all my colleagues back for the next few weeks of hard work. We have had a bit of a break from the House over the last few months however our work is never done. With the number of activities that took place in most regions this summer I am sure most of us did not get much of a rest. It was however comforting to be with friends and family.

During this session we will be dealing with many issues that are effecting us and our constituents. We must be diligent and in some cases imaginative to ensure our people are receiving the best that we can offer.

Some areas of concern I have included, community empowerment. I would like to make sure that when transfers take place, there are enough resources to provide the services effectively, not give the transfer group less and be expected to do more.

Finding a way to control bootleggers in our communities is another issue that I think needs to be addressed. It seems most accidents and crimes are committed by individuals under the influence of alcohol and in most cases this is probably brought by the local bootlegger in the community. If we want our communities to prosper we must find ways to remove this burden. As you know, Rae-Edzo residents passed a plebiscite recently, restricting the amount of alcohol allowed by a person per month. This was brought into effect on September 15, 1996 and it is still rather early to tell how it will work, but I feel if given the support by the RCMP, the Department of Justice, as well as the various organizations in Rae-Edzo this will be the first step in ridding our community of this problem.

I know there are many issues that we will be discussing over the next while and I also hope our discussion will be meaningful and productive. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Rabesca. Members' statements. Mr. Erasmus.

Thank you, Mr. Speaker. I would also like to welcome everybody back to Yellowknife. My statement today is in the area of the social envelope. The social envelope, as we all know, includes the Departments of Education, Culture and Employment, Health and Social Services, Justice, and Housing.

Mr. Speaker, every year, forced growth eats up a lot of our dollars. Last year, we had to reduce the social envelope's budget by almost $40 million. What we mean by forced growth is the cost that we cannot control because of a high birth rate which relates to higher health and education costs and those related areas. This year will be no exception. We will have huge forced growth in and around $30 million to $40 million. This means that unless there is an increase in the social programs area, there will have to be more cuts. Cuts that are tougher than the ones that were made last year. We have been told that the cuts that were made were the easy ones.

Last year, the majority of the Members agreed that each department's budget would be maintained at the same percentage of their overall budget as the previous year. That meant that if Education, Culture and Employment had 15 percent of the overall budget in 1995/96, Education, Culture and Employment had to have 15 percent of the budget in 1996/97.

Mr. Speaker, we also agreed that we would not balance the budget on the backs of those who can least afford it. Unfortunately, because by this we were frozen at the same percentages, tough decisions had to be made in the social programs area.

Rents were increased for seniors in personal care facilities. The fossil fuel subsidy was entirely deleted for some seniors, with no consideration for higher costs of living in certain areas.

Mr. Speaker, I seek unanimous consent to conclude my statement.

The Member for Yellowknife North is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays. Conclude your statement, Mr. Erasmus.

Thank you, Mr. Speaker. Social assistance was also lowered or income support as it is now called. We also decreased grants to organizations such as the Mental Health Association. We lowered the funds to the health boards, education boards and alcohol and drug rehabilitation centres. These are just examples.

The Minister of Education now indicates that our student/teacher ratio is now the highest in Canada. If cuts continue, we surely will be the highest in Canada. We also have the worst high school graduation rate in Canada. Now we are told that we have to close rehabilitation centres and hospitals while we have the worst rate of alcoholism and suicide.

Mr. Speaker, this government has a responsibility for the education and safety of our citizens. We cannot afford more cuts in these areas. This government must allow the budgets of the departments in the social envelope to increase in relation to other departments. I am not talking about keeping people on social assistance. I am talking about increasing the budget in the area of education and training so we can get people off of income support or social assistance. I am talking about helping our elders so that they can live independently, in dignity. I am talking about things like making sure the health of our citizens is a priority, not an afterthought to balancing the budget.

---Applause

Thank you, Mr. Erasmus. Members' statements. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Mr. Krutko.

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Ootes.

Thank you, and welcome to the Assembly. Recognition of visitors from the gallery. Mrs. Groenewegen.

Welcome to the Assembly. Recognition of visitors from the gallery. Mr Erasmus.

Thank you Mr. Speaker. I would like to recognize Rosemary Cairns. Rosemary has run our elections with an iron hand, and she is a member of my constituency from Yellowknife North. She has also just come back from Bosnia to help there. I would also like to recognize Alderman Vi Beck. I would also like to recognize Doreen Baptiste, who is here from Saskatchewan. I met her when I was attending school there in Saskatoon. Also, my lovely wife Leonie, sitting with Doreen.

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Thank you. Welcome to the Assembly. Recognition of visitors from the gallery, Mr. Ningark.

Thank you Mr. Speaker. Mr. Speaker, I would like to recognize Mr. and Mrs. John and Helen Maksagak. Thank you.

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Thank you. Welcome to the Assembly. Mr. O'Brien.

Thank you, Mr. Speaker. I would like to recognize the newest members of our local media.

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Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. Oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, my question was for the Minister of the Financial Management Board Secretariat, Mr. Todd. Mr. Speaker, this past weekend I met with several of our dedicated employees in Iqaluit. I have been informed that this government will now cease to hold leases for staff housing. Understandably, Mr. Speaker, this has caused much concern. Can the Minister for the FMBS, Mr. Todd, update this House on the status of these leases?

The Minister responsible for the Financial Management Board, Mr. Todd.

Thank you Mr. Speaker. I am not aware of the leases specific that Mr. Picco talking about, because he did not identify them. But if he is talking about some of the leases that are in his constituency, we are working with that constituency, and with the people in those houses towards trying too provide alternative housing to those who are in the leased housing at this time. Thank you.

Thank you. Oral question,

supplementary. Mr. Picco.

I am sorry, Mr. Speaker, I did not make the question clear enough for Mr. Todd. I meant the high rise apartment complexes and several single individual units that we are leasing as a government. Maybe Mr. Todd can tell me what is going to happen to these tenants now that we are going to cease leasing and they will have the lease on the open market. What type of strategy we are going to put in place to help the easement of these employees into an uncertain marketplace? Thank you Mr. Speaker.

Mr. Todd.

I will write to my honourable colleague and explain to him in detail what we were doing, but since he would like to make it public, I am prepared to do that. Could have found out in the newspaper I guess.

The point of the matter is that this government is going to get out of staff housing. I am tired of saying it, I am going to say it again. We are going to be out of staff housing. We are going to sell the houses to our employees, and here there are leases. We are going to release these leases if it provides no undue hardship to the owners of those particular leases.

What we are working with in Mr. Picco's riding and the people in that brown building, or row housing he is talking about, we are working with them right now to find a way in which to, over a phased period of time, providing them with some financial assistance to ultimately get out of the leased accommodation where we believe the landlord is acting in an unfair manner with respect to highjacking the rates. Thank you.

Thank you. Oral question, supplementary. Mr. Picco.

Thank you, Mr. Speaker. Again Mr. Speaker, I have to apologize to Mr. Todd for not being more clear and of course I did receive the letter from Mr. Todd, but that letter was to me, it was not to the constituents of Iqaluit or the people of the Northwest Territories. Therefore, my question was so it could come out in the open and discover who is doing it. I am sure Mr. Todd appreciates that question. My supplementary question then to Mr. Todd is that a lot of these houses of course are furnished, and right now I understand, I did see a couple of vans moving in, and our employees taking furniture out of these units and storing it. Of course a couple of weeks later they go on a public tender and then anyone could buy them. My question to Mr. Todd is will the FMBS direct our departmental officials in the region and in Iqaluit specifically, to allow our employees to buy this furniture that they have had in their apartments for six, seven, ten years, before we seize it, put it in a warehouse and tender it. Thank you Mr. Speaker.

Mr. Todd.

Mr. Speaker. This applies to everybody in the Northwest Territories, however I did send it to the tenants that Mr. Picco was talking about. And if there is a problem with respect to furniture, I am not aware of it. I will review it with my officials, and we will be only too happy to report back to this House, or through letter, to Mr. Picco on this issue. Thank you.

Thank You. Final supplementary. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, Mr. Todd is in fine form today. What I would like to ask Mr. Todd, in my final supplementary question, concerns what he had said earlier about the government of the Northwest Territories moving towards helping our constituents moving to the work, to the open marketplace. Would Mr. Todd be able to give me something in writing so that I can take it back to

my constituents and let my constituents know that Mr. Todd is very concerned about their well being, so that they can see this, and maybe some type of financial amount or more clarification of what type of an arrangement Mr. Todd would be making to help said constituents. Thank you Mr. Speaker.

Mr. Todd.

It takes one to know one. Mr. Speaker, I think right now I have to get Cabinet approval for this policy that we are working on. Once the Cabinet has approved that policy, I would be only to happy to share it with the honourable colleague and the tenants who are affected. It is the overall objective of this government to ensure that out staff are given adequate resources to be able to pay the rent, at the same time, we have an obligation to ensure that landlords are not using this as an excuse to blackmail both the tenants and this government which we will not stand for. Thank you.

Thank you. Oral Questions. Mr. Miltenberger.

Thank you. Mr. Premier. Mr. Morin.

Thank you Mr. Speaker. Currently, our negotiations with BHP are on a socio-economic agreement between the government and BHP. Our government, and that includes the Department of Indian Affairs as well. There is also a negotiation happening on community benefit agreements between Treaty 8 and Treaty 11, North and South Slave Metis, and community benefit agreements as well as negotiations on environmental monitoring. I believe that one is pretty well done. It looks like it is coming together, and that Northerners will benefit from this project. Hopefully it will be concluded by Friday. Thank you.

Thank you. oral question supplementary. Mr. Miltenberger.

Mr. Premier.

Thank you Mr. Speaker. We are developing a job strategy, and the Minister responsible, Mr. John Todd, is working with members of this Assembly on a strategy of bringing investment into the Northwest Territories, and also to capitalize on our renewable resources that are out and we are able to capitalize on in the very near future as well as non-renewable resource employment. This government is on record as saying development is going to happen in the Northwest Territories, Northerners will benefit, or we would not support that involvement. We are in support of any type of development that creates employment for residents of the Northwest Territories. Thank you.

Thank you. Oral questions

supplementary, Mr. O'Brien.

Thank you Mr. Speaker. Mr. Speaker, I take that as we really do not have a strategy yet, it is in the works, so therefore my question would be when can we expect this strategy to be released and tabled here in the House? Thank you.

Mr. Morin.

Thank you Mr. Speaker. I think it is premature to talk about tabling a job strategy in this House. We have not got any agreements in writing or legally binding agreements with mining developers that are hoping to develop the nonrenewable resources in this country. So until that is finished, it would not be tabled in this House. Thank You.

Thank you. Oral question supplementary. Mr. O'Brien.

Thank you Mr. Speaker. Given the fact that we are, as Mr. Todd, the Minister of Finance has indicated, we basically have two more budgets left so time is running out. When can we expect this document to be brought forward? Thank you.

Okay, Mr. Premier, would you like to respond? That is the same question again.

Thank you, Mr. Speaker. We realise the urgency of developing a job strategy for the Northwest Territories and we are working on that. We are working on that in partnership with other members of this assembly and so today I cannot commit to a time when that will be tabled and in what session of a future assembly. But let me assure the member, we agree it is an important priority and we are working on it with all of you. Thank you.

Final supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. That is regrettable. Can the Premier tell this House how many jobs were lost in the past year and if there has been any study or analysis done to see what kind of an impact these jobs are having on our social program such as social services, justice and so on. Thank you.

Thank you. Mr. Morin. That was two questions.

Thank you, Mr. Speaker. They are fairly vague questions and kind of tough to answer. If he would clarify what jobs he is talking about, where he is talking about then I might have a possibility of answering the question. Thank you, Mr. Speaker.

Thank you. You have had your final supplementary, Mr. O'Brien. Oral questions? Mr. Ootes.

Thank you, the Minister of Transportation, Mr. Antoine.

Mahsi, Mr. Speaker. Mr. Speaker, the highway reconstruction between the Rae-Edzo and Yellowknife portion as we all know is very rough, I live in Fort Simpson so I drive it quite often so I am fully aware of what the honourable member is talking about. As for the construction of this road, it is in the long term plan of this department.

The current plan we have is that next year we start with planning of it and then the following year and about three years from now, hopefully, we start some sort of construction. But this is a long term plan and as we know this is an evolving budget and as we go along we will inform the member of the developments of this plan. Thank you.

Thank you, oral questions, supplementary, Mr. Ootes.

Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, the department is fully aware of the possible consequences of further resource development north of Yellowknife and the section of the highway between Rae and Yellowknife which is the uncompleted section. It is an area where we have to concentrate our efforts.

As the development and the amount of traffic increases certainly the road is going to be used a lot more and at the current level the maintenance will have to be looked at, but as I said earlier in my answer, the department is looking at this scenario and we are planning a strategy on how we could deal with it. We are developing a strategy plan, as I said in the last session, Mr. Speaker, when I talked about the future of this department and the type of work that we need to do.

We need to develop partnerships with the industry and this government as well as the federal government and perhaps different corporations out there. We have to be innovative in our thinking in trying to address these major costs because the construction of this section of the highway is going to be a very major cost and the type of funding that we have currently is not adequate enough to do the type of work we need to do.

So, we have to be innovative and we have to look at new ways of how to do this work. Thank you.

Thank you, oral question, supplementary, Mr. Ootes.

Mr. Antoine.

Thank you, Mr.

Speaker. Once again, Mr. Speaker, this new scheme that we are working on is in the development stage it is fairly hard to say exactly right now what kind of time frame we are looking at. Next year, we hopefully start planning the actual road site, if it goes through the different processes for approval. In the meantime, between now and then we are going to have to sit down and develop some sort of a strategy which the department has done. We need to get involved with the other possible partners and develop the plan together because we cannot do it alone.

So, my answer to the honourable member, Mr. Speaker, is that at this point in time it is difficult to say what kind of time frame we are looking at. Thank you.

Oral questions. Final supplementary, Mr. Ootes.

Mr. Antoine.

Thank you, Mr. Speaker. The honourable member is putting me on the spot here, but the way I would like to answer it is that we have to look at the whole highway system. There are other interests out there as well, in regards to development of our infrastructure. The highest priority, however, according to the department is to reconstruct and re-develop existing infrastructure. So, in that regard, it is already in there and we are looking at the existing road and we know it has to get done. We are also looking at our finances and we are looking at different ways of trying to do this work. Thank you, Mr. Speaker.

Oral questions, Mr. Krutko.

Mr. Premier.

Thank you, Mr. Speaker. As the member knows I will take this question as notice and I will get the Minister to reply to him. Thank you.

Thank you, the question is taken as notice. Oral questions, Mr. Roland.

The Minister of Transportation, Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, this summer I had the opportunity to drive the Dempster Highway from

Inuvik through Fort McPherson all the way to Whitehorse and at the end of this trip I had the opportunity to meet with the Minister of Transportation for the Yukon government. As of a few days ago, that government is no longer there. The Minister is no longer there, but however, there is on going discussions between the officials of both departments, the deputy minister of the transportation from the Yukon government as well as his counterpart, my deputy minister, have been meeting on a regular basis. After the new government is formed in the Yukon, then we will sit down with the new government and see if the conditions we have laid out are still there.

Mr. Speaker, the Dempster Highway, I am told will remain open, however, there is discussion about the level of maintenance that is currently on that section of the highway. It was discussed by the Yukon government, they were looking at, they are also looking at budget reductions in the Yukon, therefore, they were looking at this section of the highway for reducing the level of maintenance and they were looking at different scenarios on how to do that.

We were at that stage in the discussion when the election was called in the Yukon and at this point in time we do not know who the new Minister is going to be, but as far as the discussion between the officials, they are going on and, hopefully, once we know who the new Minister is we will try to sit down with them as soon as possible and resume our discussion. Hopefully, they will have changed a little bit of direction by that time and that the type of level of maintenance they were talking about reducing will not be as much as they were asking for, hopefully. But this is, in all our discussions, this will take place. Thank you.

Thank you, oral question, supplementary, Mr. Roland.